CBT automotive newscast: October 15, 2021

Inside Automotive:

CADA Pres. Tim Jackson on how his dealer members are managing the inventory squeeze
Dealers have had less inventory on their lots which has been a large concern for many. So where do we go from here as we head into a new year and what do dealer associations have to say about it? On today’s show, we are pleased to welcome Tim Jackson, President, and CEO of the Colorado Automobile Dealers Association, to walk us through how dealers are faring in his state right now. Watch the complete segment here.

Headlines:

The Michigan Minority Supplier Development Council has filed a countersuit against Piston Group, the largest black-owned auto supplier in the U.S., alleging breach of contract and defamation. The two companies have been disputing since last year over Piston Group’s minority-enterprise business status, a valuable certification revoked by the MMSDC. To be certified, a company must be 51% majority-owned and actively managed in day-to-day operations by a person of color, and operate independently. The heads of Piston Groups’ four divisions are white, which the MMDSC says violates its rules.

U.S. Safety investigators are seeking answers as to why Tesla didn’t file recall documents when it updated its autopilot software to better identify parked emergency vehicles. In a letter to Tesla, the NHTSA told the EV maker it must recall vehicles if an over-the-internet update deals with a safety defect. The agency also ordered Tesla to provide information about its “full self-driving” software that’s being tested on public roads with some owners.

EV maker, Electric Last Mile Solutions (ELMS) has signed a battery supply deal with China’s Contemporary Amperex Technology (CATL). Under the deal with ELMS, CATL will provide lithium-iron-phosphate batteries using simpler cell-to-pack technology. CATL’s batteries power the Class 1 small delivery vehicle, and ELMS plans to build a larger Class 3 truck in the second half of 2022. The financial terms of the deal, which runs through 2025, were not disclosed.

BMW’s CEO Oliver Zipse says, “BMW will be ready for any ban on internal combustion engine cars from 2030 onwards with an offering of EVs.” The EU proposed an effective ban on fossil fuel vehicles from 2035 as a measure to combat global warming. BMW hasn’t set an end date for the production of internal combustion engines vehicles but expects 50% of global car sales to be EVs by 2030.

Initial jobless claims fell below 300,000 for the first time since the beginning of the pandemic. First-time claims for unemployment insurance totaled 293,000. Continuing claims, fell by 134,000 to 2.59 million, another pandemic-era low. The job market has added 366,000 positions in August and 194,000 in September, leaving the household employment total more than five million less than it was pre-pandemic.

News & Opinion:

New vehicle average price soars to more than $45,000 in September
Auto industry professionals continue to wonder, just how high will new prices rise before hitting a ceiling? The answer to that question did not come in September. Kelley Blue Book is reporting that the average new car price rose for the sixth consecutive month, each one setting a record. September’s average broke past $45,000 for the first time ever to $45,031, once again setting a new bar for customers to jump over when purchasing a car. Read more

Common accidents in the service department and ways to avoid them
Mechanics make up some of the top 25 most dangerous jobs mainly because of the number of injuries and deaths that occur in the industry. Considering some of the most common accidents in the service department, how can you keep your technicians safer? We evaluate the top three injuries suffered by mechanics and look at ways to mitigate the damage. Read more